Study: eSports revenues to surpass $1bn in 2020
June 6, 2019
According to a study by Futuresource Consulting, overall eSports industry revenues are set to exceed $900 million (€799.2m) this year with an 18 per cent 19-23 CAGR expected, driving revenues through the billion-dollar mark in 2020 and onto $1.8 billion by 2023. As key events attract viewing figures comparable to tier 1 sporting competitions, securing exclusivity of major eSports events will become strategically important for both traditional sports broadcasters and the largest eSports streaming platforms.
eSports has become a popular collegiate sport
Varsity eSports is becoming increasingly popular and already forms part of college life especially in North America in the same way as football or hockey teams according to the study, entitled Esports Opportunity for the Broadcast, Pro-AV and IT Industries.
Universities are building out eSports labs where their local teams can practice, equipped with high-end gaming PCs and broadcasting equipment. Some universities even have their own eSports arena where hundreds of spectators can watch major live competitions on giant screens. High schools have also started forming esports teams, and some schools and colleges already offer esports as part of their curriculum, as well as bachelor and master degrees in esports combined with business or event management.
Where is the opportunity for major IT and AV suppliers?
eSports requires specific high-performance gaming PCs with advanced graphics and various gaming-related peripherals. Specifications are so important that players usually carry their own keyboard and mouse to tournaments. In addition, special gaming chairs are needed, as well as appropriate audio-visual (AV) equipment for streaming. This includes premium microphones and headsets, but also HD webcams. Large events usually require pro-video cameras, high-end sound systems and giant screens. There are huge opportunities in this growing market, especially on the education side as esports is becoming more mainstream across schools and universities.
The global esports PC installed base at universities and colleges is expected to reach the 100k units mark in 2020, while an installed base of another 15k PCs for K-12 schools is forecast for the same year. While the market is already quite mature in North America and South Korea, other countries primarily across Western Europe and APAC – most importantly China – are catching up rapidly.
Competition among the main PC and AV brands is expected to intensify in eSports including specific solutions designed for schools and colleges. In addition, major vendors look to become sponsors of key tournaments and aim to get on the most popular gamers’ equipment lists.